- Judge Analisa Torres overrules SEC’s efforts to withhold important documents.
- SEC v. Ripple began on 22nd December, 2022.
- Ripple Labs appears the stronger contender in this lawsuit.
Did SEC Just Lost The Case to Ripple?
It’s been a while now, Ripple v. SEC looks like a never ending lawsuit trail to this date. In the recent update regarding the case, Judge Analisa Torres has overruled the notorious regulator’s attempt to withhold the documents written by William Hinman, Director of Securities and Exchange Commission’s Finance Division.
This can be a huge plus for their defense. According to the reports, the document says that Ethereum is not a security. SEC have alleged that XRP has traded as a security without being registered to this date. But if the document doesn’t consider ETH as a security, then Ripple can leverage the fact against the US regulator.
Is this the biggest mistake for the plaintiffs in the case? Because it can prove fruitful to Ripple Labs as the event can turn tides in favor of the defendants.
SEC filed the lawsuit against Ripple on 22nd December, 2020 by claiming that their native token is not a security.They said that Garlinghouse and Larsen illicitly raised 1.3 Billion USD through XRP sales. However, the company didn’t respond to the case for 39 days. But eventually things escalated and the company gave a logical reply to the financial watchdog.
The company says that their indigenuos token does not fall under the parameters of Howey Test, as it is not an investment contract neither the organization has entered any contract with the investors. They added that the SEC does not identify Ethereum or Bitcoin as a security, then how can they allege XRP to act differently considering the same nature of the asset.
The organization points out that no regulator on this globe says that cryptocurrencies should be registered as securities. According to this fact, this case appears neither here nor there. Looking at the current circumstances, defendants are struggling to survive in the case. If Ripple Labs wins the case, then it will open several gateways concerning their ecosystem’s development in future.
Source: https://www.thecoinrepublic.com/2022/09/30/sec-to-turn-over-what-might-be-the-case-defining-docs-for-ripple/